PMB, THE ECONOMIST!
PMB has done it again. The school cert holder (?) has done what a PhD holder could not.
Very simple economics. We buy most of our goods from China, so why must we pay the Chinese in dollars? The Chinese buy a lot of crude oil from us, so why must they pay us in dollars?
So PMB made a deal with the Chinese. We pay for the goods we buy from China in Yuan, the Chinese currency. They buy our crude oil and pay in Yuan.
The exchange rate is to be pegged at 30 Naira to one Yuan or RMB.
So how does it favour us? Simple.
The Yuan is now 6.48 to a dollar. So if you pay 30 Naira to the Yuan, that would be equivalent to 194.4 Naira to the dollar.
Since the dollar exchanges for 199 Naira, you save N4.6. 199 - 194.4 = 4.6. Simple, huh?
In simple terms, PMB has just strengthened the Naira by 9.15%!
And that's not the end of the story. As we begin to deal in the Yuan, the demand for dollar would plummet and this in turn would weaken the dollar. It would crash to around 140 Naira to the dollar.
May Almighty Allah extend your life span, give you good health and strength.
God bless Nigeria! God bless PMB!!.

you don't use layman's calculation in this case study, it is more complex than you think in macroeconomic cases of this nature.
nigeria might become a dumping ground for China economy, thereby killing production sectors at the long run.
nigerian government don't want to devalue the naira, but China devalues on a constant basis of 8 months to 2yrs
Chinese foreign Reserve in in dollars, while nigeria is trying to use yuan as a second to naira, how do you explain that?
already, 25% of our annual budget is used yearly to service old debts, now pmb is adding extra load on the 25% that will start repayment by 2017, that is to say not less than 35% of yearly budget will be used for debt servicing. (e.g: in every N1trn, not less than N350b goes to just serving) I weep for our children unborn.
he that goes borrowing, goes sorrowing

While this is only temporary, like everything else
I would urge nigerian importers to focus on importing heavy duty manufacturing machines from china
And not already finished goods. So when the Chinese decides to devalue, we would still have something to fall back to.

spoke too soon,wait and see







long live ipob

Dmillionaire:
you don't use layman's calculation in this case study, it is more complex than you think in macroeconomic cases of this nature.
nigeria might become a dumping ground for China economy, thereby killing production sectors at the long run.
nigerian government don't want to devalue the naira, but China devalues on a constant basis of 8 months to 2yrs
Chinese foreign Reserve in in dollars, while nigeria is trying to use yuan as a second to naira, how do you explain that?
already, 25% of our annual budget is used yearly to service old debts, now pmb is adding extra load on the 25% that will start repayment by 2017, that is to say not less than 35% of yearly budget will be used for debt servicing. (e.g: in every N1trn, not less than N350b goes to just serving) I weep for our children unborn.
he that goes borrowing, goes sorrowing

no mind dem...he even assumes the exchange rate will be the same throughout PMB's tenure......

Just answer two questions for me before I comment:


1.How much was 1 Dollar to 1 Naira before 29th May, 2015?

2. How did the hike in Dollar emanate in the first place please?


Thank you.

norriswood:
PMB, THE ECONOMIST!
PMB has done it again. The school cert holder (?) has done what a PhD holder could not.
Very simple economics. We buy most of our goods from China, so why must we pay the Chinese in dollars? The Chinese buy a lot of crude oil from us, so why must they pay us in dollars?
So PMB made a deal with the Chinese. We pay for the goods we buy from China in Yuan, the Chinese currency. They buy our crude oil and pay in Yuan.
The exchange rate is to be pegged at 30 Naira to one Yuan or RMB.
So how does it favour us? Simple.
The Yuan is now 6.48 to a dollar. So if you pay 30 Naira to the Yuan, that would be equivalent to 194.4 Naira to the dollar.
Since the dollar exchanges for 199 Naira, you save N4.6. 199 - 194.4 = 4.6. Simple, huh?
In simple terms, PMB has just strengthened the Naira by 9.15%!
And that's not the end of the story. As we begin to deal in the Yuan, the demand for dollar would plummet and this in turn would weaken the dollar. It would crash to around 140 Naira to the dollar.
May Almighty Allah extend your life span, give you good health and strength.
God bless Nigeria! God bless PMB!!.

GOD BLESS PMB AND PYO bad news for the waillers

Well let's see.

Nothing is ever good enough for wailers



Leave them be


It's simple economics, not a complex one

1 Chinese Yuan equals 0.15 US Dollar

1 Chinese Yuan equals 30.72 Nigerian Naira

1 US Dollar equals 199.05 Nigerian Naira***(CBN rate , Paypal exchanged $1 for 340 Nigerian Naira )






[size=14pt]if a commodity or good costs ¥100


100 x 0.15 , the $ value of the item is $15.44

Compare $ Value to ¥ Value

¥100 to Naira = ₦ 3071.97

vs

$15.44 to Naira = ₦ 3073.33 CBN RATE and that's not the rate transactions are made online

vs

$15.44 to Naira = ₦ 5249.60


[/size]
It doesn't take rocket science to see the difference

Need answers to this question

amtaken:
Just answer two questions for me before I comment:
1.How much was 1 Dollar to 1 Naira before 29th May, 2015?
2. How did the hike in Dollar emanate in the first place please?
Thank you.